SHL Announces Full-Year 2023 Results - Stable Revenue Growth Alongside Groundbreaking Clinical Milestones

SHL Telemedicine Ltd. (NASDAQ: SHLT; SIX Swiss Exchange: SHLTN) ("SHL" or the "Company"), a leading provider and developer of advanced personal telemedicine solutions, announced today its results for the full-year 2023, highlighting fiscally responsible growth across all regions and a strategic focus on expansion and innovation.

In 2023, SHL Telemedicine achieved key highlights, underscoring its global market strength. SHL’s Israel operation maintained stability and profitability, reflecting the company's solid foundation in its home market. In the US, significant advancements were made toward launching direct-to-consumer (B2C) sales of the SmartHeart ECG platform, enhancing access to remote cardiac care. Additionally, the launch of virtual visit services in Germany, in collaboration with BARMER, marked a significant expansion of SHL's offerings, further demonstrating the company's innovative approach to telemedicine and its commitment to broadening healthcare accessibility.

FY2023 Financial Highlights:
*All comparable previous periods figures are in constant currency¹.

• Total revenues rose to USD 57.1m, a 3.1% increase from USD 55.4m in 2022.
• Revenues from the Company's operation in Israel increased by 2.3% compared to 2022, with revenues standing at USD 42.1m.
• Revenues from the Company's operation in Germany amounted to USD 14.1m, a 2.4% increase from USD 13.7m in 2022.
• Adjusted EBITDA² for the Company was USD 2.1m, compared to USD 3.5m in 2022, mainly due to increased investment in Germany and in USA as well as non-recurring expenses of USD 2.2m, related to onetime and restructuring expenses of USD 1.6m in Germany and USD 0.6m Nasdaq listing expenses.
• Cash on hand and short-term cash investments as of December 31, 2023, remain robust at USD 26m.
• Net loss was USD 6.9m, compared to a net loss of USD 0.4m in FY2022. The decrease is mainly related to a lower operating profit and to financial expenses due to investor options modifications, which is a non cash item.

Strategic Developments and Highlights:

• In the United States, SHL made significant strides in its direct-to-consumer strategy, prioritizing promotion of its SmartHeart ECG technology. Concurrently, SHL continues to leverage its Tier1 strategic customer relationships, including the integration within CVS Minute Clinics, underscoring SmartHeart's increasing acceptance in the healthcare ecosystem.
• In 2023, clinical studies from Mayo Clinic and the Imperial College London showcased SmartHeart's unique promise to reduce emergency visits and readmission rates for cardiac patients. The final TELE-ACS findings from Imperial College London study presented at ACC24 and published in JACC, revealed groundbreaking results including a 76% reduction in hospital readmissions and a 41% decrease in ED visits, validating SHL's unique offering in remote cardiac care.
• SHL's SmartHeart technology also excelled in the U.S. Army's Project Convergence – Capstone 4 experiment, showcasing its reliability and advancing military healthcare.
• In Israel, SHL's B2C and B2B activities saw growth, with revenues increasing by 2.3% to $42.1m. Despite challenges caused by the war that broke out in the beginning of the 4^th quarter, Israel remains highly profitable for SHL.
• In Germany, the Doctors' Virtual Visit service launched with BARMER is now available to 12.4 million insured individuals. With a strong growth trend, it's expected to be a key driver for reaching break-even in German operations.

Looking ahead to 2024, the Company expects to see continued growth in revenues with double-digit growth in profitability in their Israel operations; continued consistent growth in the Virtual Visits service in Germany alongside the German operation reaching break even in 2024 and profitability during 2025; Moreover, the company expects to benefit from the investments previously made in the US, both in B2B and B2C activities.